The product cycle and inequality

The product cycle and inequality

by Boyan Jovanovic

Book 10910 of Working paper

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"This paper models the product cycle and explains how it relates to world inequality. In the model, both phenomena arise because skilled people have a comparative advantage in making high-tech products. The model can explain up to a 10:1 income differential between people and up to a 7:1 differential between countries"--National Bureau of Economic Research web site.

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